Washington 2023-2024 Regular Session Status: Passed House Bipartisan · 3 D · 1 R cosponsors

HB 2308 — Concerning housing affordability tax incentives for existing structures.

Last action — House Rules "X" file.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2023-2024 Regular Session. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

412 added · 361 removed

Plain-language change summary

The latest version of HB 2308 adds provisions that allow city governments to create property tax exemption programs for buildings that are converted into affordable housing. Notably, it includes an exemption for multiunit residential buildings that are converted from market-rate residences, as well as commercial buildings transformed into multiunit homes. This change is significant because it broadens the opportunities for cities to encourage the development of affordable housing, which can help address housing shortages and support low-income households in their communities.

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H-3003.1 SUBSTITUTE HOUSE BILL 2308 State of Washington 68th Legislature 2024 Regular Session By House Housing (originally sponsored by Representatives Walen, Hutchins, Robertson, Santos, Barkis, and Shavers) READ FIRST TIME 01/31/24.
H-2523.2 HOUSE BILL 2308 State of Washington 68th Legislature 2024 Regular Session By Representatives Walen, Hutchins, Robertson, Santos, Barkis, and Shavers Read first time 01/11/24.
Referred to Committee on Housing.
1 SHB 2308 increase greenhouse gas emissions.
1 HB 2308 increase greenhouse gas emissions.
2 SHB 2308 (5) "Multiunit residential building" means a building permanently affixed to the ground having four or more dwelling units not designed or used as transient accommodations and not including hotels and motels.
2 HB 2308 (5) "Multiunit residential building" means a building permanently affixed to the ground having four or more dwelling units not designed or used as transient accommodations and not including hotels and motels.
A city governing authority may by ordinance or resolution establish a state and local property tax exemption program for property owners for the value of real property that consists of a commercial building converted from a commercial building to a multiunit residential building and contains affordable housing units for low-income households, excluding land and nonhousing-related improvements not qualifying under this chapter.
(1) A city governing authority may by ordinance or resolution establish a state and local property tax exemption program for the value of real property that consists of a multiunit residential building converted from a market rate residential building to a building that contains affordable housing units for low-income households, excluding land.
(2) A city governing authority may by ordinance or resolution establish a state and local property tax exemption program for property owners for the value of real property that consists of a commercial building converted from a commercial building to a multiunit residential building and contains affordable housing units for low-income households, excluding land and nonhousing-related improvements not qualifying under this chapter.
(2) In order to qualify for a property tax exemption for conversion of a commercial building to affordable housing under this chapter, housing units must:
(2) In order to qualify for a property tax exemption for multiunit residential building conversion into affordable housing under this chapter, housing units must:
(a) Be a multiunit residential building;
(b) Have a certificate of occupancy issued not more than 25 years prior to the effective date of this section;
and (c) Be in possession of the owner or, if purchased after the effective date of this section, be acquired by using a loan from a lender overseen by the United States federal housing finance agency offered for the purposes of generating affordable housing units.
The lender or servicing agency must have oversight over the conversion, including quarterly reports verifying affordable housing units are being rented or sold to low-income households.
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3 HB 2308 (3) In order to qualify for a property tax exemption for conversion of a commercial building to affordable housing under this chapter, housing units must:
(3) The governing authority may request input from the Washington housing finance commission and the department of commerce in developing affordability requirements for units dedicated to affordable housing.
(4) The governing authority may request input from the Washington housing finance commission and the department of commerce in developing affordability requirements for units dedicated to affordable housing.
(4) Except as provided in subsection (5) of this section, rent levels for qualifying affordable housing units, including any mandatory fees for tenant-paid utilities that are required as a condition of tenancy, may not exceed 30 percent of the income limit for the affordable housing unit.
(5) Except as provided in subsection (6) of this section, rent levels for qualifying affordable housing units, including any mandatory fees for tenant-paid utilities that are required as a condition of tenancy, may not exceed 30 percent of the income limit for the affordable housing unit.
(5) The governing authority may establish income or rent levels other than those indicated in this chapter where it determines that such an adjustment is needed to serve the needs of low-income household affordable housing units in the community.
(6) The governing authority may establish income or rent levels other than those indicated in this chapter where it determines that such an adjustment is needed to serve the needs of low-income household affordable housing units in the community.
The governing p.
The governing authority shall conduct public outreach to interested parties prior to adopting a program with income or rent levels other than those indicated under this chapter.
3 SHB 2308 authority shall conduct public outreach to interested parties prior to adopting a program with income or rent levels other than those indicated under this chapter.
(1) For commercial building conversions, the value of real property qualifying under this chapter is exempt from ad valorem property taxation for 30 successive years beginning January 1st of the year immediately following the calendar year that the certificate of tax exemption is filed with the county assessor in accordance with section 8 of this act.
(1) For residential conversions, the value of real property qualifying under this chapter is exempt from ad valorem property taxation for 20 successive years beginning January 1st of the year immediately following the calendar year that the certificate of tax exemption is filed with the county assessor in accordance with section 8 of this act.
(2) The exemption provided under this chapter may not be granted if the owner receives an exemption under chapter 84.14 RCW.
(a) For the first 10 years, the exemption amount is equal to 100 percent of the value of the residential building.
(3) The exemption in this chapter excludes land and nonhousing related improvements not qualifying under this chapter.
(b) For the second 10 years, the exemption amount is equal to 50 percent of the value of the residential building.
(2) For commercial building conversions, the value of real property qualifying under this chapter is exempt from ad valorem property taxation for 30 successive years beginning January 1st of the year immediately following the calendar year that the certificate of tax exemption is filed with the county assessor in accordance with section 8 of this act.
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4 HB 2308 (3) The exemption provided under this chapter may not be granted if the owner receives an exemption under chapter 84.14 RCW.
(4) The exemption in this chapter excludes land and nonhousing related improvements not qualifying under this chapter.
(1) For commercial conversions, a minimum of 20 percent of residential units in a multiunit residential building subject to a tax exemption under this chapter must be rented or sold as affordable housing units to low-income households for a period no less than 30 years to address local market conditions.
(1)(a) For residential conversions, a minimum of 30 percent of residential units in a multiunit residential building subject to a tax exemption under this chapter must be rented or sold as affordable housing units to low-income households for a period no less than 30 years.
Transitioning units to be rented or sold as affordable housing units is not an acceptable reason for a landlord to evict a tenant, consistent with RCW 59.18.650.
Units must be transitioned to serve low-income households through natural turnover.
The tax exemption under this chapter does not apply until the minimum number of units under this section have been rented or sold as affordable housing units to low-income households.
A governing authority may require that more than 30 percent of the units in multifamily housing buildings be affordable housing to address local market conditions.
(b) For commercial conversions, a minimum of 20 percent of residential units in a multiunit residential building subject to a tax exemption under this chapter must be rented or sold as affordable housing units to low-income households for a period no less than 30 years to address local market conditions.
Up to and including the midpoint, the percentage requirement may be rounded down to the nearest whole number of units.
NEW SECTION.
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5 HB 2308 NEW SECTION.
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(a) Information supporting the requested exemption, including information indicated on the application form and other requirements specified in the governing authority's adopted exemption;
4 SHB 2308 (a) Information supporting the requested exemption, including information indicated on the application form and other requirements specified in the governing authority's adopted exemption;
(b) For residential conversions, documentation that indicates the units in the building were rented at over 80 percent area median income prior to conversion to affordable housing by providing the average rent charged to tenants from the previous two years as well as the anticipated amount of time needed to transition units to serving low-income households;
(b) A floor plan of units and other information requested;
(c) A floor plan of units and other information requested;
(c) A statement that the applicant is aware of the potential tax liability involved when the property ceases to be eligible for the exemption provided under this chapter;
(d) A statement that the applicant is aware of the potential tax liability involved when the property ceases to be eligible for the exemption provided under this chapter;
and (d) A certification of family size and annual income requirements in a form acceptable to the city for designated affordable housing units.
and (e) A certification of family size and annual income requirements in a form acceptable to the city for designated affordable housing units.
(b) Within two years of the issuance of the conditional certificate of exemption, the applicant shall submit information indicating that it has complied with the terms of the conditional certificate of tax exemption.
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6 HB 2308 (b) Within two years of the issuance of the conditional certificate of exemption, the applicant shall submit information indicating that it has complied with the terms of the conditional certificate of tax exemption.
If the authorized representative of the p.
If the authorized representative of the city determines that the affordability is consistent with the contract issued with the conditional certificate of tax exemption, the city must file a final certificate of tax exemption with the county assessor within 10 days of such determination.
5 SHB 2308 city determines that the affordability is consistent with the contract issued with the conditional certificate of tax exemption, the city must file a final certificate of tax exemption with the county assessor within 10 days of such determination.
(a) Family size and annual income for each tenant living in a designated affordable housing rental unit, and a statement that the property is in compliance with affordable housing requirements described in section 6 of this act;
(a) Family size and annual income for each tenant living in a designated affordable housing rental unit, and a statement that the property is in compliance with affordable housing requirements described in section 4 of this act;
and (d) Any other information required by the city to determine compliance with exemption requirements.
and p.
7 HB 2308 (d) Any other information required by the city to determine compliance with exemption requirements.
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(d) The total monthly rent amount for each affordable and market rate unit;
6 SHB 2308 (d) The total monthly rent amount for each affordable and market rate unit;
If the owner intends to discontinue compliance with the affordable housing requirements as described in section 6 of this act or any other condition to the exemption, the owner must notify tenants and the jurisdiction 60 days before the owner's discontinuance.
If the owner intends to discontinue compliance with the affordable housing requirements as described in section 5 of this act or any other condition to the exemption, the owner must notify tenants and the jurisdiction 60 days before the owner's discontinuance.
and (d) The additional tax, interest, and penalty are a lien on the real property and attach at the time the property or portion of the property is removed from exempted status.
and (d) The additional tax, interest, and penalty are a lien on the real property and attach at the time the property or portion of the p.
8 HB 2308 property is removed from exempted status.
From the date of p.
From the date of delinquency until paid, interest must be charged at the same rate applied by law to delinquent ad valorem property taxes.
7 SHB 2308 delinquency until paid, interest must be charged at the same rate applied by law to delinquent ad valorem property taxes.
The owner must provide tenant relocation assistance in an amount equal to one month's rent to a low-income household within the final month of the low-income household's lease.
The owner must provide tenant relocation assistance in an p.
9 HB 2308 amount equal to one month's rent to a low-income household within the final month of the low-income household's lease.
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(1) Subject to the requirements of chapter 84.--- RCW (the new chapter created in section 15 of this act), the tax levied by RCW 82.08.020 does not apply to:
8 SHB 2308 (1) Subject to the requirements of chapter 84.--- RCW (the new chapter created in section 15 of this act), the tax levied by RCW 82.08.020 does not apply to:
(4) The department must determine eligibility under this section based on information provided by the qualifying owner, including the annual certification required under section 9 of this act.
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10 HB 2308 (4) The department must determine eligibility under this section based on information provided by the qualifying owner, including the annual certification required under section 9 of this act.
If the department discovers that eligibility conditions for the exemption are no longer met, the department shall notify the owner within 60 p.
If the department discovers that eligibility conditions for the exemption are no longer met, the department shall notify the owner within 60 days.
9 SHB 2308 days.
(d) A qualifying owner claiming an exemption under this section shall rent or sell a minimum of 10 percent of residential units in a multiunit residential building subject to a tax exemption under chapter 84.--- RCW (the new chapter created in section 15 of this act) to low-income households for at least 10 years.
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11 HB 2308 (d) A qualifying owner claiming an exemption under this section shall rent or sell a minimum of 10 percent of residential units in a multiunit residential building subject to a tax exemption under chapter 84.--- RCW (the new chapter created in section 15 of this act) to low-income households for at least 10 years.
The owner must retain, in adequate detail, records to enable the department to determine whether the qualifying owner is entitled to an exemption p.
The owner must retain, in adequate detail, records to enable the department to determine whether the qualifying owner is entitled to an exemption under this section, including invoices, proof of tax paid, and construction contracts.
10 SHB 2308 under this section, including invoices, proof of tax paid, and construction contracts.
(2) The legislature categorizes these tax preferences as ones intended to induce certain designated behavior by taxpayers, as indicated in RCW 82.32.808(2)(a).
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12 HB 2308 (2) The legislature categorizes these tax preferences as ones intended to induce certain designated behavior by taxpayers, as indicated in RCW 82.32.808(2)(a).
(4) It is the legislature's intent to provide an exemption from ad valorem property taxation for residential improvements qualifying under chapter 84.--- RCW (the new chapter created in section 15 of this act) and to provide other incentives to property owners to p.
(4) It is the legislature's intent to provide an exemption from ad valorem property taxation for residential improvements qualifying under chapter 84.--- RCW (the new chapter created in section 15 of this act) and to provide other incentives to property owners to convert existing market rate and commercial buildings into affordable housing units for low-income households.
11 SHB 2308 convert commercial buildings into affordable housing units for low- income households.
12 SHB 2308
13 HB 2308
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Action History

  1. House Rules "X" file.

  2. Referred to Rules 2 Review.

  3. Minority; without recommendation.

  4. FIN - Majority; 2nd substitute bill be substituted, do pass.

  5. Executive action taken in the House Committee on Finance at 8:00 AM.

  6. Public hearing in the House Committee on Finance at 8:00 AM.

  7. Referred to Finance.

  8. Minority; without recommendation.

  9. HOUS - Majority; 1st substitute bill be substituted, do pass.

  10. Executive action taken in the House Committee on Housing at 1:30 PM.

  11. Executive session scheduled, but no action was taken in the House Committee on Housing at 8:00 AM.

  12. Public hearing in the House Committee on Housing at 1:30 PM.

  13. First reading, referred to Housing.

Sponsors

Sponsorship breakdown

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1 sponsors · 5 co-sponsors · 145 not signed on

Sponsors (1)

Co-sponsors (5)

Not signed on (145)

145 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Subjects

taxation housing
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Frequently asked questions

Who sponsors HB 2308?
HB 2308 is sponsored by Clyde Shavers (Democrat), Andrew Barkis (Republican), Sharon Tomiko Santos (Democrat), Robertson, Hutchins, and Amy Walen (Democrat).
What is the current status of HB 2308?
This bill died with 2023-2024 Regular Session. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HB 2308?
Track HB 2308 free on One Click Politics — get push/email alerts when it moves.

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